This is in edition 3 of Spivak
The way I found a $\delta$ was much different than in the book and was wondering if it was correct (the value of my $\delta$ ended up being different as well):
Find a $\delta$ such that $|f(x) - l$ < $\epsilon$ $\forall$ x satisfying $0 < |x - a| < \delta$:
Proof:
$f(x) = \sqrt x ; a = 1; l = 1$
$|\sqrt x - 1|$ $\le$ $|x - 1|$ < $\delta$ = $\epsilon$
$\therefore$ $\delta = \epsilon$
Yes, you're right, as long as we make sure that $\delta\le 1$. The justification is that $$\left|\sqrt x-1\right| = \frac{|x-1|}{\sqrt x+1} \le |x-1|,$$ since $\sqrt x+1 \ge 1$.
By the way, there's never a unique "right answer" to such questions.